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Why Is Halozyme Therapeutics (HALO) Up 1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Halozyme Therapeutics (HALO - Free Report) . Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Halozyme Q1 Earnings & Revenues Miss Estimates
Halozyme reported first-quarter 2020 loss of 4 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. The company had reported earnings of 1 cent in the year-ago quarter.
Total revenues declined 55.5% year over year to $25.4 million due to lower royalties and collaboration revenues as well as product sales. The top line also missed the Zacks Consensus Estimate of $39.35 million.
Quarterly Highlights
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues were $16.8 million in the first quarter, down 6% from the year-ago quarter. The lower royalties resulted from lower sales of its partnered drugs due to biosimilar competition.
Product sales, solely from the sale of bulk rHuPH20 to collaborators using the ENHANZE platform for drug development, decreased 2.9% to $8.1 million in the first quarter.
Revenues under collaborative agreements were $0.4 million compared with $30.6 million in the prior-year quarter. The significant decline was due to recognition of $30 million upfront payment from argenx in the year-ago quarter.
Research and development (R&D) expenses declined 67.6% year over year to $10.2 million mainly due to discontinuation of oncology drug development efforts.
Selling, general and administrative (SG&A) expenses were $12.6 million, down 29.8% from the year-ago period. The decline was due to lower compensation and commercial-related expenses as a result of restructuring initiatives announced last year.
2020 Guidance Maintained
Despite the COVID-19 pandemic, Halozyme maintained its view for revenues and earnings in 2020 provided in January. The company expects total revenues in 2020 to be between $230 million and $245 million, indicating year-over-year growth of 17-25%. It expects reported earnings to be in the range of 60-75 cents per share.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months. The consensus estimate has shifted 53.13% due to these changes.
VGM Scores
Currently, Halozyme Therapeutics has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Halozyme Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Halozyme Therapeutics (HALO) Up 1% Since Last Earnings Report?
A month has gone by since the last earnings report for Halozyme Therapeutics (HALO - Free Report) . Shares have added about 1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Halozyme Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Halozyme Q1 Earnings & Revenues Miss Estimates
Halozyme reported first-quarter 2020 loss of 4 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. The company had reported earnings of 1 cent in the year-ago quarter.
Total revenues declined 55.5% year over year to $25.4 million due to lower royalties and collaboration revenues as well as product sales. The top line also missed the Zacks Consensus Estimate of $39.35 million.
Quarterly Highlights
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues were $16.8 million in the first quarter, down 6% from the year-ago quarter. The lower royalties resulted from lower sales of its partnered drugs due to biosimilar competition.
Product sales, solely from the sale of bulk rHuPH20 to collaborators using the ENHANZE platform for drug development, decreased 2.9% to $8.1 million in the first quarter.
Revenues under collaborative agreements were $0.4 million compared with $30.6 million in the prior-year quarter. The significant decline was due to recognition of $30 million upfront payment from argenx in the year-ago quarter.
Research and development (R&D) expenses declined 67.6% year over year to $10.2 million mainly due to discontinuation of oncology drug development efforts.
Selling, general and administrative (SG&A) expenses were $12.6 million, down 29.8% from the year-ago period. The decline was due to lower compensation and commercial-related expenses as a result of restructuring initiatives announced last year.
2020 Guidance Maintained
Despite the COVID-19 pandemic, Halozyme maintained its view for revenues and earnings in 2020 provided in January. The company expects total revenues in 2020 to be between $230 million and $245 million, indicating year-over-year growth of 17-25%. It expects reported earnings to be in the range of 60-75 cents per share.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months. The consensus estimate has shifted 53.13% due to these changes.
VGM Scores
Currently, Halozyme Therapeutics has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Halozyme Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.